Which of the Following Is a Contribution of Economist Vernon

question 239

Multiple Choice

Which of the following is a contribution of economist Vernon Smith?

• A) the idea of movements along the supply and demand curves
• B) the discovery of equilibrium price
• C) experimental evidence of equilibrium price
• D) the theory of demand shocks

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Definitions:

Activity

Refers to any action or task performed within an organization that consumes resources.

Relevant Range

The range of activity over which a company expects its operating assumptions, such as cost behavior and sales mix, to remain valid, influencing budgeting and financial planning.

Fixed Costs

Costs that do not vary with the level of production or business activity, remaining constant even when output changes.

Variable Cost

Expenses that change in proportion to the activity or volume of business.